Graeme, I dont know how hard is to program the AI, you are right...but since Illwinter is talented, we can clearly see this from the Dominions games, I am pretty sure that they could fix it. Someone here posted that it wasnt fixed because scripting the AI was boring
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I think after a company is releasing a game, they must support it, interact with the players that what is wrong, what to fix etc. This is how its working for all games.
..and yeah I never played any mods for Dominions 2..there were any mods to fix the AI errors? I really missed those if there are any.